5 Personal Finance Tips for Beginners

Have you realized lately that it is high time and you must start your financial planning?Have you started earning recently? Do you need some guidance on personal finance?

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If your answer to any of these questions is yes, then worry not. Here are 5 tips that will help you get your money under control:

1. Start saving: This point might seem obvious but it was extremely important to highlight it. The key to successful finance is saving the money. To achieve this, set aside a definite amount of money every month which would remain untouched. Then, ensure to use the remaining amount to meet your monthly and daily expenses.
2. Plan your budget: The next step is to plan your budget. The remaining amount set aside for monthly expenditure should be planned well. Cut down unnecessary grocery requirements and avoid excessive shopping. If certain things are not required on a daily basis, for example milk or curd, you can consider buying such items on alternate days.
3. Keep track of expenses: It is advised to keep track of the expenses. You can do it using pen and paper, spreadsheets or even apps. Eventually, you will be able to find out ways to reduce the expenses wherever possible. In the beginning phase, it is recommended that you start with old school pen and paper. This is because it is easy and makes you mindful. Henceforth, you will spend wisely.
4. Invest: The next most important step after saving money is investing the saved money. If you miss out on saving, the money you saved will keep sitting in your bank account without doing any good to you and will lose its value with time. This way, you will lose against the battle of inflation. So, start investing this money to earn interest on that amount.
5. Price vs. Value: It is crucial to understand the difference between price and value. Before purchasing something, be it a product or a service- ask yourself if it is worth the price you are paying for it. Sometimes, discount coupons give us the illusion that we would get more than what we would pay. However, this might not be true and we might fall in the trap of misjudgement. Decide upon the value for yourself.

The simple tips discussed here will definitely give a good start to your financial planning and will aid you in making better financial decisions. Keep learning more and with time, you will be able to manage your personal finance pretty well.